10 Best Aluminum Stocks To Buy According to Billionaires

10 Best Aluminum Stocks To Buy According to Billionaires

  • 16.03.2025 18:35
  • insidermonkey.com
  • Keywords: High tariffs, Supply chain uncertainty

The article highlights aluminum's growing demand due to its versatility in industries like EVs, aerospace, and packaging. Billionaires are investing in top aluminum stocks like Kaiser Aluminum and Ball Corporation, driven by sustainability trends and market growth potential. Factors such as tariffs, recycling, and battery innovations further boost the industry's appeal.

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Estimated market influence

Kaiser Aluminum Corporation

Positivesentiment_satisfied
Analyst rating: N/A

The company is expecting full-year revenue to grow between 5% and 10%, with improvements in EBITDA margins by up to 100 basis points.

Ball Corporation

Ball Corporation

Positivesentiment_satisfied
Analyst rating: Buy

Strong operational management and cost efficiency, returning $1.96 billion to shareholders through dividends and share repurchases in 2024.

Context

Analysis of Aluminum Industry Trends and Market Implications

Market Overview

  • Global aluminum market valued at $229.83 billion in 2023, projected to grow to $403.29 billion by 2032 with a CAGR of 6.2%.
  • Aluminum demand driven by EVs, green energy, and lightweight manufacturing.

Drivers of Demand

Electric Vehicles (EVs)

  • Automakers like BMW and Mercedes use aluminum to enhance fuel efficiency and range.
  • U.S. aluminum market expected to reach $43.05 billion by 2032 due to EV adoption.

Aerospace Industry

  • Boeing and Airbus increasing production, relying on aluminum alloys for fuselages and wings.

Packaging Industry

  • Aluminum beverage cans contain 3x to 12x more recycled material, reducing waste and energy consumption.
  • Circular economy trends favoring recycled aluminum to cut costs and emissions.

Challenges and Trade Dynamics

  • U.S. reintroduced 25% tariffs on imported aluminum, raising costs for automakers, beverage companies, and construction firms.
  • Canada and Europe retaliating with tariffs, causing supply chain uncertainty.
  • China capped annual aluminum production, shifting demand toward recycling and secondary sources.

Innovation in Aluminum-Battery Technology

  • Aluminum-ion batteries projected to grow to $9.5 billion by 2035, driven by renewable energy and EV demand.
  • Cheaper and more abundant than lithium, offering faster charging and longer lifespan.

Billionaire Investments and Market Sentiment

  • Billionaires increasing investments in aluminum stocks, reflecting confidence in growth potential.
  • Aluminum stocks returned 4.32% YTD, outperforming the broader market's -4.13% performance.
  • Notable investors include Blackstone CEO supporting U.S. tariffs and Malaysian/Chinese tycoons investing strategically.

Company Insights

Kaiser Aluminum Corporation (NASDAQ: KALU)

  • Ranked 10th with 6 billionaire investors and 14 hedge fund holders.
  • Net sales surpassed $3 billion in 2024, with stable demand for aerospace and high-strength products.
  • Expected revenue growth of 5-10% in 2025, with EBITDA margin improvements.

Ball Corporation (NYSE: BALL)

  • Ranked 9th with 7 billionaire investors and 34 hedge fund holders.
  • Q4 diluted earnings per share jumped 7.7%, returning $1.96 billion to shareholders in 2024.
  • Optimistic about volume growth in 2025, supported by new investments and expansions.

Long-Term Effects and Strategic Considerations

  • Sustainability trends driving demand for recycled aluminum.
  • Potential regulatory impacts from tariffs and trade policies affecting global supply chains.
  • Innovation in aluminum-ion batteries could transform energy storage and transportation.